A Spectrum Trading Model with Strict Transmission Power Control

The underutilization of spectrum coupled with developments in network technologies has prompted a number of proposals for managing spectrum. Dynamic spectrum access radio technology, which is based on cognitive radio technology, promises to increase spectrum sharing and thus overcome the lack of available spectrum for new communication services. In this paper, the pricing and the transmission power control processes are investigated in a cognitive radio network. The considered network consists of multiple primary service providers which have some unutilized bandwidth; and multiple secondary users that require spectrum bands. In this multiple-seller and multiple-buyer environment, the proposed framework aims at determining the optimum price values for unit spectrum bands that maximizes PSPs profits while protecting the social welfare of their network. Furthermore, the framework considers the power control, especially the effect of transmission power on the profit of PSPs. Modeling the competitive relationships among network elements as games ensures analyzing all elements' behaviors and actions in a formalized way. The existence of various network elements that want to maximize its own profits makes the problem very complex, with usually conflicting objective functions. We have used a model based on game theory for PSPs' pricing problem to provide with a well defined equilibrium. The simulation results show that the proposed framework allow PSPs to make up to 45%-86% of additional profit while preserving the social welfare of the network.